Every week, cash back credit card deals are decreasing. American Express recently emailed me to let me know that they have lowered the cash back rate on their SimplyCash Business Card from 5% to 3% on gas station purchases. If this is your card, it might be time to seek out another deal.
Here are a few suggestions designed to maximize your cash back based on your spending habits.
Blue Cash from American Express.
If you use credit cards for most of your spending, you might like this card. While the first yearly $6,500 of your spending is subject to only 1% cash back on “everyday” purchases (including purchases at gas stations, supermarkets, and drug stores) and 0.5% cash back on everything else, once you pass that threshold, you will earn 5% cash back on your “everyday” purchases and 1.5% cash back on everything else.
Discover Open Road Card.
If you’re not a heavy spender on your credit cards but you’re still looking for the best deal, the Discover Open Road Card may be a good choice. You will earn 5% cash back of the first $100 you spend each month on gas and auto maintenance. In other categories, you will earn 0.25% or 0.50% cash back. Spend more than $3,000 over the entire year and you’ll earn 1% cash back on your spending in excess of this minimum.
TrueEarnings Card from Costco and American Express.
Even if you don’t shop at Costco, this card provides a good cash back bonus. You can earn 3% back on gas, as long as you don’t buy 75 gallons or more in one transaction. There’s no yearly limit to this cash back, however. The catch here, as you might have guessed, is that you must be a member of Costco in order to qualify for this card.
Note: This is a “business” card, but you can apply as an individual.
Chase BP Visa Rewards Card.
If you’re loyal to these brands of gasoline, this card provides a strong 5% cash back rebate for your purchases at BP or Amoco stations. You’ll also receive a 2% cash back rebate in other categories and 1% cash back on everything else (except gasoline sold at gas stations branded with anything other than BP or Amoco). BP has low prices on the path of my commute, but usually not the lowest. The question is whether the larger cash back amount will offset the slightly higher price.
As with any rewards-offering credit cards, taking advantage of cash back depends on your ability not to carry a balance, accrue interest, or pay late fees. Any method of using a rewards credit card other than paying the balance in full every month will negate any benefit offered by the issuer.